Auto Dealers Should Do These Five Transformative Things

MARINA DEL REY, CA – Auto dealers should do five key things to transition into the new age of mobility when people will rely on ride- and car-sharing services and potentially buy fewer personal vehicles.

So says Frank Ferrara, a former Hyundai executive who now runs Traction Labs, which he describes as a platform for auto-mobility growth and transformation.

· Maintain sales and parts-service operations at separate locations. Showrooms belong in prominent, often high-rent spots to draw customers. But service departments should go elsewhere, including industrial parks, where real estate is less expensive.

· Employ drivers to drop off vehicles for test drives or pick them up for service.

· Lower inventory levels. “There’s no need to have high floor-plan costs.”

· Get into the vehicle-rental business. “That’s a springboard to subscription services,” he says, adding that many customers want leases shorter than today’s conventional 2- and 3-year terms.